The building of a further 204 new homes on the site of York’s former Rowntree works has been backed by £2.8 million in Combined Authority funding.

Cocoa Gardens, off Wigginton Road, is one of three York and North Yorkshire developments being backed by Combined Authority funding for new homes on brownfield sites.

A report to the Combined Authority stated the development, valued at around £66 million, would likely stall without an injection of public money to keep it viable.

York and North Yorkshire’s Mayor David Skaith said total funding of £4.3 million for 311 homes was great news but there was still a lot more to do to address affordability.

A total of 74 out of the 204 homes being funded at Cocoa Gardens are set to be sold at affordable rates.

Cocoa Gardens is set to see a total of 586 two, three and four bedroom homes built.

The first and second phases are currently under construction and are set to see 103 homes built within the grounds of the former Rowntree factory.

The entrance to the site of the Cocoa Gardens housing development in Wigginton Road, York. Picture: Google Street ViewThe entrance to the site of the Cocoa Gardens housing development in Wigginton Road, York. Picture: Google Street View (Image: Google)

They follow the conversion of the factory building itself into 279 apartments in a scheme known as Cocoa Works.

The report stated preparatory work was well advanced for phases three to five, with some minor planning permissions required before it can begin.

But it added there was a clear case for providing additional funding.

The report stated: “The likelihood is that the development would stall without public funding to address viability.”

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Funding for the York development comes alongside almost £1.5 million for two developments in North Yorkshire, in Askew and Linton-on-Ouse.

The three of them make up the first phase in funding for homes on brownfield sites, with money for a second batch of developments set for a decision in September.

Two York developments, Acomb’s Lowfield Green and Ordnance Lane off Fulford Road, are among those set to be considered for more than £3 million combined in September.

Affordable homes are set to make up 181 of the 311 being funded on the three developments approved by the Combined Authority on Monday, July 22.

Mayor Skaith said Monday’s decision brought the building of a total of 1,000 homes closer with around 700 having being backed by funding since the Combined Authority was established.

The mayor said: “Nearly half of them will be affordable, which is great news but there’s a lot more to achieve.

“Funding brownfield housing creates more capacity in urban areas.

“My ambition is to find ways to develop more homes that meet the needs of rural communities which is a huge challenge.”

York Council Leader Cllr Claire Douglas said investment in homes on brownfield sites was particularly welcome.

Cllr Douglas said: “It’s a great investment in the region, the ability to build on brownfield sites is hugely important because that’s the first place we should be building.”

Separately, the Combined Authority also approved four new funds worth £27.5 million for the next four years, with businesses and organisations set to be invited to bid for grants.

The Vibrant and Sustainable High Streets Fund, Carbon Negative Challenge Fund, Business Innovation Fund and Skills Innovation Fund are set to launch in October.